Making clietn a reseller

When I give a client reseller Privileges, the package that is assigned for there account takes up all there space and bandwidth. Fo some reason it thinks my account is his account. I have it setup for a certain amount of accounts which can be created allong with a certain amount of space.

The plan I gave them is
1500 MB Space
25 gig Bandwidth

When they go to create account, it says there is no room left because the plan above is taking all there space.

Just limit how much space he/she can use rather then how many accounts he/she can give away. When the user adds an account and he/she is limited to space it will deduct from the space he/she has in his WHM so therefore he/she will not be able to add more then you gave him/her. Also known as overselling.